Tesla stock (TSLA) fell 1.6% on Friday July 5 and later rebounded by about 2.1% at the close, the longest consecutive 8-day increase in nearly a year. During this period, the stock rose 38%, with a market cap increase of $220 billion. It has risen more than 70% from its low in late April and is now close to the breakeven point for 2024.
(Source: Google)
Since early May, Tesla's stock price has been trading within a fairly narrow range, and now it has finally broken through this range. The stock has exceeded the 200-day moving average - a long-term trend indicator that traders watch closely.
(Source: Bloomberg)
Delivery Exceeded Expectations Earlier this week, Tesla's second-quarter deliveries exceeded the average analyst expectation, pushing the stock price up. Although analysts are optimistic about these better-than-expected delivery volumes, this marks the first consecutive quarterly decline in deliveries for the automaker in more than a decade. The automaker announced on Tuesday that it delivered 443,956 cars in the second quarter, above the average Wall Street analyst estimate of 439,302 cars, but down from the previous quarters.
(Source: Google)
Tesla is expected to publish its quarterly earnings after the US market closes on July 23. Analysts are also looking forward to the company's much-anticipated self-driving taxi, which will be launched on August 8.
In addition to these production and delivery results, Tesla bulls also highlighted the fastest-growing part of the company-its energy storage business.
(Source: Yahoo Finance)
"For Tesla, the worst has passed. It's very important that China seems to have had a 'small rebound' in June quarter," wrote Wedbush Securities analyst Daniel Ives in a Friday report.
Another positive catalyst is the procurement list released by provincial governments in China on Thursday, which includes domestically produced Tesla cars. According to Reuters, the catalog of Jiangsu Province in eastern China includes Tesla's Model Y, which means government officials can buy the car as an official car.
Despite these better-than-expected delivery volumes, Tesla's growth in overseas competition from Chinese peers, and declining demand for electric vehicles in the US. Some analysts believe that the company's layoff plan earlier this year, which cut more than 10% of its workforce, is a signal of future difficulties.
"Tesla started celebrating Independence Day early, with better-than-expected second-quarter deliveries, a 0.033 million-unit drop in inventory, and better-than-expected storage," wrote Adam Jonas, an analyst at Morgan Stanley, in a recent report.
Although analysts are optimistic about these better-than-expected delivery volumes, this marks the first consecutive quarterly decline in deliveries for the automaker in more than a decade. The automaker announced on Tuesday that it delivered 443,956 cars in the second quarter, above the average Wall Street analyst estimate of 439,302 cars, but down from the previous quarters.
Another positive catalyst is the procurement list released by provincial governments in China on Thursday, which includes domestically produced Tesla cars.
According to Reuters, the catalog of Jiangsu Province in eastern China includes Tesla's Model Y, which means government officials can buy the car as an official car.
Tesla faces fierce competition from Chinese peers overseas, while demand for electric vehicles in the US is weakening. In order to reduce costs, the company launched a layoff plan earlier this year, cutting more than 10% of its workforce, which some analysts believe is a signal of future difficulties.
The company also sharply cut prices last year to boost sales.
"There are still risks of further price cuts in the future, and there are still more problems in the fundamentals. We are still facing a cold winter of demand for electric vehicles," said Barclays senior stock research analyst Dan Levy earlier this week. Levy has a target price of $180 for the stock.
At last month's Tesla shareholder meeting, CEO Elon Musk confirmed that the industry is going through a transitional period and that short-term demand and sales will still face some difficulties.
In addition to these production and delivery results, Tesla bulls also highlighted the fastest-growing part of the company-its energy storage business.
Tesla is expected to publish its quarterly earnings after the US market closes on July 23. Analysts are also looking forward to the company's much-anticipated self-driving taxi, which will be launched on August 8.
Since early May, Tesla's stock price has been trading within a fairly narrow range, and now it has finally broken through this range. The stock has exceeded the 200-day moving average - a long-term trend indicator that traders watch closely.
Director General Dan Ives wrote in a report this week, 'The key to Tesla's stock price is Wall Street's recognition that Tesla is the most undervalued artificial intelligence company in the market.' He raised the target price of the stock from $275 to $300, and predicted that the stock will reach $400 by 2025.
Ives also added that the company's robot taxi event on August 8th 'will pave the way for (fully autonomous driving) and autonomous future.'